Customers of several Telstra BigPond plans will be better off after 1 December as the telco giant responds to intense competition in the marketplace.

Under the new arrangements users of BigPond Dial-up plans will receive an increased download allowance for the same price. Internet Frequent customers will find their downloads increase from 300 MB to 400MB for AU$28.95, and Internet Mega customers will see their download limit increase from 450 MB to 700 MB for AU$38.95 per month.

Telstra's entry-level ADSL and Cable customers will see their download limits increase from 300MB to 500MB for no change in price.

Despite the large increase, Telstra is unlikely to receive kudos from punters who are looking for unlimited downloads. Telstra claims they cannot provide a viable service that has variable costs by providing a flat-rate plan.

Those customers on the higher BigPond broadband plans will see a reduction in their monthly bill. ADSL customers on the 5GB plan will see their bill reduced by AU$45 per month, and those on the 10GB plan will see the bill reduced by AU$100 per month. Cable customers on the 5GB plan will be charged AU$10 less per month, and those on the 10GB plans will be charged AU$40 less per month. Additional usage charges for these plans have also been reduced.

"There's been significant growth in broadband customer numbers, there's been an explosion in the number of companies that provide broadband services," Telstra spokesperson Stuart Gray told ZDNet Australia  . "Taking all those things into account it was time for us to review our prices and plans."

Telstra denied the restructuring is in response to widespread criticism over the cost of its service. "It's not criticism, it's our analysis of the market and of the competition that is around," said Gray. "We're sensitive to the way customers use their service and to the competition."

The chief executive of Telstra, Ziggy Switkowski, last night said the company would focus on broadband along with mobile phones and pay-TV as the key engines for future growth.

Telstra shares have plummeted in value following the lowest sales growth in almost a decade, prompting the Government to "postpone" its proposed final sale of Telstra. This may take the heat out of an argument the government was not winning, with the public still unconvinced of the benefits of a sale of the rest of Telstra.

At the 7th Annual Rural and Remote Communications conference today Shadow Minister for IT Kate Lundy warned delegates not to be fooled by announcements about delays, and claimed that fully privatising Telstra would lead to a significant decline in the current "disturbing" levels of service.

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